The information shown below relating to the ending inventory was taken at lower of cost or NRV from the records of Components Corporation:

.:.

Required: 1. Determine the valuation of the above inventory at cost and at lower of cost or NRV, assuming application of lower- of- cost- or- NRV valuation by (a) Individual items, and (b) Classifications.2. Give the entry to record the writedown, if any, to reduce ending inventory to lower of cost or NRV. Assume periodic inventory and the allowance method. 3. Of the two applications described in (2) above, which one appears preferable in this situation? Explain.